Question

3. If we place a price ceiling of $15 do we have a surplus or shortage? By how much? Label producer surplus, consumer surplus, and dead weight loss. What is the quantity sold? Calculate the area of consumer surplus, producer surplus, and dead weight loss. $60 $40 $20 |

Answer 1

$ 6o $40 Consumer surplus Deadueight los $ 20 Producer Sumples 20 5o 60 40 when prce celing fIs taced than there ull ertoge 9Ma ntty utplied daranded wil exceed be because Tantity Shortnge 50-20 30 Suardity cold wil be 20 Yebraserded by dotted area , & Producer checks rebresrts dead weight less &nes ebreserd cenaumer puls curples area in mar ked ar ea urblus =20 x 15 Ix 2o X lo Censumer 400 Producer Supluss 20 X5 50 X Dead weight las = x 20 X5 x 20 Xlo = 150 2